MM/U2 Topic 1 Consumer Buying Behavior: Introduction, Characteristics
According to Engel, Blackwell, and Mansard
‘Consumer behaviour is the actions and decision processes of people who purchase goods and services for personal consumption’.
According to Louden and Bitta
‘Consumer behaviour is the decision process and physical activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and services’.
Consumer buying behavior
Consumer buying behavior is the sum total of a consumer’s attitudes, preferences, intentions, and decisions regarding the consumer’s behavior in the marketplace when purchasing a product or service. The study of consumer behavior draws upon social science disciplines of anthropology, psychology, sociology, and economics
CHARACTERISTIC OF CONSUMER BEHAVIOR
Consumer behaviour is a systematic process relating to buying decisions of the customers. The buying process consists of the following steps;
- Need identification to buy the product .
- Information search relating to the product.
- Listing of alternative brands.
- Evaluating the alternative (cost-benefit analysis)
- Purchase decision.
- Post-purchase evaluation by the marketer.
- INFLUENCED BY VARIOUS FACTORS
Consumer behaviour is influenced by a number of factors.
The factors that influence consumers are : marketing, personal, psychological, situational, social, cultural etc.
- DIFFERENT FOR ALL CUSTOMER
All consumers do not behave in the same manner. Different consumers behave differently. The difference in consumer behaviour is due to individual factors such as nature of the consumer’s life style, culture, etc.
- DIFFERENT FOR DIFFERENT PRODUCTS
Consumer behaviour is different for different products. There are some consumers who may buy more quantity of certain items and very low/no quantity of some other items.
- REGION BOUNDED
The consumer behaviour varies across states, regions and countries. For instance, the behaviour of urban consumers is different from that of rural consumers.
Normally, rural consumers are conservative (traditional) in their buying behaviour.
- VITAL FOR MARKETERS
Marketers need to have a good knowledge of consumer behaviour. They need to study the various factors that influence consumer behaviour of their target customers. The knowledge of consumer behaviour enables marketers to take appropriate marketing decisions.
- REFLECTS STATUS
Consumers buying behaviour is not only influenced by status of a consumer, but it also reflects it. Those consumers who own luxury cars, watches and other items are considered by others as persons of higher status.
- SPREAD – EFFECT
Consumer behavior has a spread effect.
The buying behaviour of one person may influence the buying behavior of another person. For instance, a customer may always prefer to buy premium brands of clothing, watches and other items etc.
This may influence some of his friends, neighbors, colleagues. This is one of the reasons why marketers usecelebrities like Shahrukh Khan , Sachin to endorse their brands.
- STANDARD OF LIVING
Consumer buying behaviour may lead to higher standard of living. The more a person buys the goods and services, the higher is the standard of living.
- KEEPS ON CHANGING
The consumer’s behaviour undergoes a change over a period of time depending upon changes in age, education and income level. Etc, for instance,, kids may prefer colorful dresses, but as they grow up as teenagers and young adults, they may prefer trendy clot